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EU Proposes Suspending Trade Concessions with Israel Over Gaza, West Bank Concerns

BRUSSELS — The European Commission proposed suspending certain trade-related provisions of the EU-Israel Association Agreement on Wednesday, citing Israel’s breach of human rights obligations amid the Gaza conflict and West Bank settlements, according to details received by The Chenab Times. The move would impose duties on Israeli imports, affecting preferential market access for goods worth €15.9 billion annually.

The proposal follows a review finding violations of Article 2, which mandates respect for human rights and democratic principles, due to the deteriorating humanitarian situation in Gaza from military operations and aid blockades, as well as the E1 settlement expansion undermining the two-state solution, the Commission stated in its press release dated September 17, 2025. EU-Israel trade totaled €42.6 billion in 2024, with the EU as Israel’s largest partner at 32% of its goods trade.

European Commission President Ursula von der Leyen said: “The horrific events taking place in Gaza on a daily basis must stop. There needs to be an immediate ceasefire, unrestrained access for all humanitarian aid, and the release of all hostages held by Hamas. Reflecting these principled commitments, and taking into account serious recent developments in the West Bank, we propose to suspend trade concessions with Israel, sanction extremist ministers and violent settlers, and put bilateral support to Israel on hold, without affecting our work with Israeli civil society or Yad Vashem,” as quoted in the EU press release.

The Commission also proposed halting bilateral support to Israel, excluding civil society and Yad Vashem, impacting €6 million yearly allocations from 2025-2027 and €14 million in ongoing projects under the Neighbourhood, Development and International Cooperation Instrument. Sanctions target extremist Israeli ministers, such as National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich, violent settlers, and 10 Hamas politburo members under the EU Global Human Rights and Hamas regimes, adding to nine individuals and five entities already listed for West Bank violence and Gaza aid blocking.

EU foreign policy chief Kaja Kallas stated: “We must leverage the tools at our disposal to pressure the Israeli government into changing course. Among the options on the table, suspending trade concessions and imposing sanctions on extremist ministers, violent settlers, and Hamas operatives would send a strong message from the European Union: this war must end, the suffering must stop, and the hostages must be released,” per the EU press release. Commissioner Dubravka Šuica added that the EU is supporting Palestinian reforms with €1.6 billion over two years.

The trade suspension requires qualified majority approval in the Council and takes effect 30 days after notifying the EU-Israel Association Council. Sanctions need unanimity, facing opposition from Germany, Hungary, Italy, Austria, and the Czech Republic, despite support from Ireland, Spain, Belgium, the Netherlands, Denmark, and Sweden, Reuters reported on September 17, 2025. Israel has urged Brussels against the proposals, with Foreign Minister Gideon Saar writing to von der Leyen, “Pressure through sanctions will not work,” AFP reported. Kallas clarified, “The aim is not to punish Israel,” but to improve Gaza’s humanitarian situation.

The push for action comes as Israel faces fresh international condemnation following a major ground assault on Gaza City. The Israeli army launched a massive bombardment before dawn on Tuesday and advanced troops deeper into the city’s largest urban hub, estimating 2,000 to 3,000 Hamas militants remain, with about 40% of residents having fled, AFP stated. A United Nations probe accused Israel of genocide in Gaza, alleging Prime Minister Benjamin Netanyahu and senior officials incited the crime.

The conflict began with Hamas’s October 2023 attack on southern Israel, killing 1,219 people, mostly civilians, per an AFP tally of official figures. Israel’s retaliatory campaign has killed at least 64,964 people, predominantly civilians, according to the territory’s health ministry, figures the United Nations considers reliable, AFP reported. The EU High Representative’s June 23, 2025, review to the Foreign Affairs Council highlighted the blockade’s impact, including bombardments, displacement, and service collapse in Gaza. The European Council on June 27, 2024, condemned Hamas attacks and urged measures against settlers while upholding the holy sites status quo.

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